The Pakistan Stock Exchange (PSX) experienced a robust surge on Friday, continuing its upward trajectory in the aftermath of the budget announcement. The benchmark KSE-100 shares index soared by 1,003.49 points or 1.27%, reaching an impressive 79,969.81 points from its previous close of 78,801.53 points. During intraday trading, the index briefly surpassed the 80,000 mark, marking a historic milestone in PSX’s history.
Market analysts attribute this bullish trend to several factors. Raza Jafri, CEO of EFG Hermes Pakistan, highlighted that investor confidence has been bolstered by recent comments from Fitch Ratings, suggesting optimism regarding Pakistan’s prospects of securing a new International Monetary Fund (IMF) program.
Jafri noted that alongside favorable external assessments, strong domestic liquidity and the allure of equities in light of ongoing monetary easing have contributed significantly to the market’s attractiveness.
Khurram Schehzad, CEO of Alpha Beta Core and economic analyst, emphasized that expectations surrounding the FY25 budget have played a pivotal role in enhancing both local and foreign portfolio investor confidence. The budget’s measures are seen as setting the stage for a potentially larger and more sustained IMF program, further bolstering market sentiment.
The recent surge in the PSX is indicative of the increasing optimism surrounding Pakistan’s economic prospects and the direction of its policies. This positive trend is attributed to the favorable response of investors to the fiscal measures implemented to promote economic stability and growth. Analysts are foreseeing sustained momentum in the market as a result.
The record-breaking highs achieved by the index serve as a strong testament to the resilience and allure of Pakistan’s stock market, especially in the face of evolving economic dynamics and global uncertainties.
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